Local Government Finance Glossary


Pooled Financing Mechanisms, different ways of cooperation between local authorities with the aim of achieving cost-efficient financing for local infrastructure projects.


Local Government Funding Agency, a type of pooled financing vehicle that is common in Europe, but also used in New Zealand. Typically, majority-owned by local authorities.

Municipal Bond Bank

A pooled financing vehicle used predominantly in the USA. Typically, owned by the state.

Club deal

A one-off bond issue in which a number of local authorities participate. Each local authority is responsible for their part of the bond issue.


Special Purpose Vehicle, an entity created for a special reason, for example for pooled financing.

Joint and several guarantee

A guarantee where the guarantors are both severally and jointly liable for any claims under the guarantee (all for one, one for all). Used by, for example, Kommunekredit (Denmark) and Kommuninvest (Sweden).

Municipal scoring system

Systems to assess the creditworthiness of local authorities that are used by LGFAs to supervise the financial development of the local authorities that the agency serve.

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